PracticeAuditMcCreevy likens published accounts to ‘bikinis’

McCreevy likens published accounts to 'bikinis'

McCreevy questions whether more frequent reporting is actually desirable.

The European Commissioner charged with forging high cross-border standards in financial reporting has likened published accounts to ‘bikinis: much more interesting for what they conceal than for what they reveal – regardless of more exacting accounting standards’.

Link: McCreevy to look into liability at EU level

Ireland’s European Union (EU) internal market commissioner Charlie McCreevy told a Chartered Institute of Management Accountants’ qualification-conferring ceremony in Dublin, that accountants should better rely on commercial horse sense.

He said: ‘tougher regulations and laws may help stamp out false accounting. But creative accounting will always be with us – even if recent developments in international accounting standard-setting makes it more challenging.

‘That’s why the task of the non-executive director, of the fund manager, of the banker, of the supplier, or of any other interested party in a company’s underlying financial health, is to ask the many questions that the published accounts don’t answer’.

McCreevy, who has promised not to deluge business with new EU regulations, said: ‘the view that more frequent reporting by companies increases transparency is one about which I am deeply sceptical. It is too easy to massage a set of quarterly or half-yearly figures’.

Skimping on investment could boost profits in one period, but lessen them the next, through reduced customer service quality and loyalty, he said.

Related Articles

EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2d Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

6d Emma Smith, Managing Editor
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

2w Alia Shoaib, Reporter
PwC to audit BBC pay policies following gender pay gap outrage

Accounting Firms PwC to audit BBC pay policies following gender pay gap outrage

1m Alia Shoaib, Reporter
PwC to take over from Deloitte as Diploma auditor

Accounting Firms PwC to take over from Deloitte as Diploma auditor

1m Alia Shoaib, Reporter
KPMG rocked by South African corruption scandal

Audit KPMG rocked by South African corruption scandal

3w Alia Shoaib, Reporter
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

4w Emma Smith, Managing Editor
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

4w Emma Smith, Managing Editor